We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study...

This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our empirical method is based on a consistent treatment of the...

Using a natural experiment from Germany, we show that temporary place-based subsidies generate persistent effects on economic density. We identify employment and capital formation as main channels for higher income per square kilometer. As the spatial regression discontinuity design allows us to...

Although decision processes at the EU level are highly complex and often require unanimity, explicit side payments among member states are unknown. However, logrolling and redistributive policies are substitutes. This paper considers the EU regional policy as a substitute for explicit side...

During this period marked by the effects of the current economic crisis, the structural funds play most important role in regional development. Each country of the Union, especially those in development they wish to reach the level of the developed world, so you must access the funds in order to...

Fiscal positions of African countries have improved significantly during the past decade. Higher economic growth, better terms of trade, improved donor support notably through debt relief and better control of expenditure contributed to this improvement. But at the same time government revenue...

The global financial crisis which emerged in developed countries has spread to the developing world. Forecasts of growth in developing countries have been downgraded a lot and questions remain as to how profound, for how long these problems will broaden which countries will be affected more than...

In recent times people have been speaking more often about the global economic and financial crisis and the effects it has on the economies of the world’s states. Countries with strong economies such as the USA, Japan or the developed countries in Europe have suffered from the global crisis,...

If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the Cluster Initiative" introduced in 1999 by the Bavarian State Government. The purpose of the initiative was...

The development policy promoted by the European Union is a policy of social and economic cohesion, based mainly on active development measures. Political and financial support granted by the European Union aims at achieving a higher level of development capable of delivering economic and social...